Bundesbank quizzes banks on impact of low interest rates
FRANKFURT, Sept 27
FRANKFURT, Sept 27 (Reuters) - The Bundesbank has asked German banks to provide information on how the low interest-rate environment affects their profitability as part of its broader supervision.
The Bundesbank confirmed a report in German financial daily Boersen-Zeitung on Friday, saying it had sent out a request in September, asking banks to supply data and forecasts by the end of the month on the impact of low interest rates and a potential sudden increase of rates on their profitability.
The banks were also asked to provide estimates for their maturity transformation.
The German Banking Industry Committee, which represents public-sector, cooperative and private-sector lenders, has asked for an extension of the deadline until the end of October.
In June, the Bank of England ordered an investigation into the vulnerability of Britain's financial institutions and borrowers to higher interest rates when central banks around the world start to wean their economies off massive stimulus.
The British central bank's Financial Policy Committee (FPC) concluded that a moderate rise in long-term interest rates did not pose an immediate threat to major banks and insurance companies and so far "had not led to dislocations in market functioning or significant impact on financial institutions."
(Reporting by Eva Taylor and Andreas Kroener; editing by Patrick Graham)
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